Discovery completed a $111 billion merger on Tuesday, creating a new company called Skydance Corp. led by CEO David Ellison and co-CEO Ynon Kreiz. The deal creates one of the world's largest entertainment companies, combining major studios, cable networks and streaming platforms under one corporate umbrella. It brings together CBS, CNN, HBO, Warner Bros., Paramount Pictures, MTV, Nickelodeon, HBO Max and Paramount+, creating a company with nearly $70 billion in annual revenue but roughly $80 billion in net debt, per Variety.
Newsweek contacted Paramount and Warner Bros. via email for comment on Tuesday. Supporters say the merger creates a brand large enough to compete in an increasingly unforgiving streaming landscape. Critics warn it could mean greater consolidation, fewer creative risks and pressure to cut costs.
As Hollywood enters a new era, some players look set to benefit more than others. No person emerges from the merger in a stronger position than Ellison. Less than a decade ago, Skydance was primarily known as a production company behind films such as Top Gun: Maverick.
Now, its founder sits atop one of the most powerful entertainment companies. In pulling off the merger, Ellison has achieved what many thought impossible: bringing together two of Hollywood's most storied studios under one roof. Ellison's pursuit of Warner Bros.
Discovery faced regulatory scrutiny. A coalition of 12 Democratic state attorneys general sued to block the merger over concerns that it would reduce competition and concentrate too much power in a single media company. Paramount ultimately reached a settlement that cleared the way for the deal to proceed.
Under the agreement, Skydance committed to invest at least $300 million annually in U.S. film and television production for five years and pledged to maintain a robust theatrical slate by releasing at least 30 movies per year initially, increasing to 32 annually in later years. The settlement also included protections for entertainment workers, commitments related to independent film production and measures designed to preserve competition in cable distribution negotiations. The concessions allowed the merger to move forward without any forced divestitures of major assets.
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